a digital future - china mobiletraditional chinese new year and state-of-the-art 5g technologies....

Cementing Leadership in Innovation and Accelerating Transformation and Development

Committ ing to Green Development and Environmental Protection

Facilitating Employee Growth and Fostering Innovative Talents

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A Digital FutureAchieved Together

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Leading 5G Innovations

As 5G technologies continue to mature, the 5G era, an era of intelligent Internet of Everything, is just around the corner. China Mobile continues to drive up 5G technology R&D, explore the forms of 5G products, and extend 5G application scenarios to areas such as smart factory, new media and smart transportation. The Company joins forces with business partners to boost the Internet-based, digital and intelligent development of all sectors and jointly deliver a beautiful 5G lifestyle.

In 2019, the Spring Festival Gala was successfully live-streamed over 5G networks in 4K ultra high-definition through a concerted effort among China Mobile, China Media Group and relevant partners, the first time since the program debuted. The broadcast is not only a 5G application demonstration that has received the largest viewership in history but also an integration between the traditional Chinese New Year and state-of-the-art 5G technologies.

With the support of China Mobile’s 5G networks, 4K ultra high-definition footages of the Spring Festival Gala Shenzhen parallel session were transmitted to the China Media Group Studio in Beijing in real time without lag and presented to the audience. This is a perfect demonstration of the characteristics of 5G such as high speed and low latency and lays the foundation for the large-scale application of ultra-high-definition video technologies in the era of 5G.

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In January 2019, China Mobile completed the first 5G-based multi-scenario smart power plant end-to-end business verification exercise in China at Jiangxi Photovoltaic Power Plant in collaboration with industry partners. Based on China Mobile’s 5G net-works, the power plant successfully materialized a number of smart energy application scenarios, delivering significant break-throughs in the application of 5G technologies in the smart energy sector.

Successfully Building the First 5G Smart Power Plant

Helping China Media Group Deliver Its First “5G+4K” Spring Festival Gala Live Broadcast

Drone patrol inspection and robot patrol inspection scenario: Based on the platform, the Centralized Control Center in Nan-chang remotely controls drones and robots at the Gongqing Photovoltaic Power Plant to perform patrol inspections. The HD inspection footages are then transmitted back to the control center in Nanchang in real time, realizing the transition of the mode of equipment control from local to remote.

Intelligent security protection scenario: Realizing real-time mon-itoring and integrated environmental surveillance at the power plant through panoramic HD cameras.

Personnel operations scenario: Audio & video and location func-tions enabled by intelligent wearables allow experts in Nanchang to provide remote guidance for on-site maintenance and repair personnel at the power plant.

Cementing Leadership in Innovation and Accelerating Transformation and Development

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In 2018, we comprehensively advanced the maturity of 5G technologies with a view to realizing 5G pre-commercial use in 2019 and large-scale 5G commercial use in 2020.

Deepening Industry TransformationDrawing on its continuously improving independent R&D capabilities, China Mobile actively explores the new “Internet + digital content” operating model and delivers new experiences and new scenarios made possible by technological innovations, thereby actively preparing itself for the new competitive landscape.

Enhancing Independent Innovation Capabilities

The Company continues to strengthen its R&D organizational system to improve its R&D capabilities in frontier technologies. In 2018, we set up second-tier R&D institutes in 10 specialized services companies and directly affiliated units. We also established an intelligent hardware innovation center to undertake all work related to the Company’s proprietary branded intelligent hard-ware such as frontier technology research, product design and R&D as well as manufacturing and supply chain management. The center equips us with the core capability to independently develop full-lifecycle intelligent hardware and develop an intelli-gent hardware ecosystem, thus propelling the large-scale and innovative development of intelligent hardware in China.

The Company works to improve its core capabilities for R&D on proprietary branded products on all fronts by comprehensively sorting out its technological capabilities, constructing its R&D capability map and deepening its R&D mechanism reform. In 2018, we completed the first phase of the construction of scientific and technological achievements sharing platform and hosted nine “Scientific and Technological Achievements Day” events, facilitating the promotion of scientific and technological achievements that takes various forms, spans different points in time, and covers multiple fields.

In terms of proprietary intellectual property rights, the Company actively fosters a culture where independent innovations are val-ued and protected. In 2018, we filed 2,222 patent applications and 1,040 patents were newly granted. We also held week-long proprietary property awareness activities, improved our mass entrepreneurship and innovation IP management, and continued to explore IP operations.

Actively applying new technologies

Building the Wuxi Internet of Vehicles City-level Demonstration Application Project

The Wuxi Internet of Vehicles City-level Demonstration Application Project led by China Mobile is a joint effort between China Mobile and nearly 30 partners and currently the world’s largest city-level Internet of Vehicles. The project opens up over 40 traffic control data items, materializing more than 30 application scenarios including push notifications for traffic light information as well as warnings for vehicle front collisions and pedestrians crossing the street. The project has played an effective role in improv-ing the public’s mobility experience and enhanced the smart traffic management of cities.

Led the setting of 5G network framework international standards and played a primary role in advanc-ing 5G terminal testing and certifi-cation standards at the 3GPP (3rd Generation Partnership Project) and GCF (Global Certification Forum).

Launched the 5G Terminal Pioneers Plan and rolled out large-scale 5G pilot network construction in full.

Core thesis on large-scale 5G anten-na won the Fred W. Ellersick Prize 2018 Best Paper Award presented by IEEE (Institute of Electrical and Electronics Engineers), the first time the prize has been independently received by a Chinese industry sec-tor/R&D organization.

Announced plans for the f irst batch of 5G terminal products in collaboration with industry players, introduced China Mobile’s first self-owned brand 5G terminal, and published the White Book on 5G Universal Modules showcasing its achievements.

Set up industry research institutes in Xiong’an New Area, Chengdu and Shanghai, and incubated realizable and scalable 5G demonstration ap-plications with a focus on industry, agriculture, healthcare, education, transportation, finance, smart cities and other verticals to promote the integration between digital econo-my and real economy.

Initiated the O-RAN Alliance for wire less network architecture geared to building “open”, “open-source” and “intelligent” wireless networks with high flexibility and low cost.

Reinforced communication and cooperation with international tele-communications enterprises in new technology R&D, new application expansion, new model exploration and other areas to push towards coordinated innovation and shared growth in the 5G era.

Upgraded the China Mobile 5G Innovation Center to an innovation incubator with 260 partners and 20 open laboratories set up worldwide, representing a concerted effort to accelerate the innovative application of 5G.

Striking out in new directionsBuilding a new ecosystem in concerted efforts

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obile Limited 2018 Sustainability Report

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enting Leadership in Innovation and Accel-

erating Transformation and D

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Operating Digital Content Ecosystem

The increasingly enriched technological means have provided people with a brand-new content consumption experience. With a focus on digital content upgrading, and taking the live broadcast of the 2018 FIFA World Cup as an opportunity, China Mobile thoroughly implements our “Internet + digital content” operations model, providing users with a full-scale immersive experience.

In 2018, Our MIGU brand was selected to be the official partner for CCTV live stream new media and telecommunications trans-mission of the FIFA World Cup held in Russia. This is the first time that a Chinese telecommunications operator has been given the live streaming rights for a major international competition. We delivered the live broadcast of all 64 matches to 4.3 billion viewers (person-times), utilizing new services and functions to enable a brand-new, high-definition and smooth viewing experience.

Operating Big Sports IP – World Cup

Innovative applications Proprietary brands

Created content IP and originally developed diversified content formats.

Developed big data-based targeted marketing.

The triangle management model has enabled digital content-focused collaboration among our headquarters, specialized services companies and provincial subsidiaries, building the coordination matrix encompassing marketing, contact points and content.

Became the first telecom operator to deliver net-works that spanned broadcasting and TV compa-nies, Internet companies and telecom operators, and obtained the IPTV transmission license plate, starting a new era of China Mobile IPTV.

Enhanced product experience based on a number of innovative technologies such as cloud editing, split screen and multiple angles.

Created a full-scale immersive experience.

Management innovations Business innovations

Service innovations

We achieved live broadcast of original images at 50 frames per second on small screens (handsets); as for big screens (TV), the real 4K image quality boasted a resolution four times higher than 1080P; the application of HDR technologies al-lowed viewers to capture the smallest detail on the field.

Features such as split screen and multiple angles fully satisfied viewers’ personalized needs for watching the World Cup; content and activities such as World Cup theme music, audio live streaming and virtual run-to-Russia initiatives offered us-ers the opportunity to be fully “engaged” in the matches.

The Editor tools can accurately capture important scenes such as shots, fouls and penalties before editing and slicing the footages in real time using AI technologies to immediately bring the wonderful clips to viewers.

“Three-dimensional” presentation of the World Cup in true colors “Interactive” experience for a fun World Cup

AI Live Stream Editor

Our customer service intelligent answering system “Yiwa” is currently the world’s biggest intelligent customer service system.

Our products, including Business Converged Gateway, With Seedlings children’s watch, and Find Him/Her Locator, won a number of awards such as Red Dot, METIS, and IDEA.

We launched a range of new AI products such as Witness Comparison All-In-One, intelligent loudspeaker, And-MU camera, and Penetrating Eyes, based on the application of new AI technologies such as intelligent voice and machine vision.

Introduced proprietary branded intelligent hardware prod-ucts across the four major areas of households, individuals, industries and chip modules.

Accelerated deployment in the area of new retail and launched a new independent terminal pilot, effectively enhancing the efficiency of existing channels.

Completed the preliminary development of image recognition, voice recognition, user portrait, big data analysis and other functions, with services like face rec-ognition and intelligent app recommendation already applied in the end products N5 and N5 pro, our self-owned brand cell phones.

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Reinforcing Compliance Management

Honesty and compliance are the cornerstones of a business and the lifeline of its sustainable development. China Mobile com-mits firmly to honesty in all its operations, operationalizes a culture of rule of law, and complies with relevant laws and regula-tions. The Company continuously improves its compliance system as well as its management of risks, anti-corruption compliance and supply chains in all respects and makes an all-out effort to progress its culture of compliance, thereby ensuring healthy de-velopment.

The Company adheres to the governance value and philosophy of “compliance with laws and respect for rules”. Internally, we reinforce all employees’ identification with and faith in rule of law, instill the spirit of integrity and commitment in our employ-ees, and guide our employees to strictly comply with rules, thereby providing rule-based safeguards for the Company’s healthy development. Externally, the Company fulfills its part as a corporate citizen by running law awareness public welfare campaigns.

We continued to implement our Compliance Escort Plan in 2018, striving for all-round enhancements in our ability to implement the rule of law and compliance management and ensuring lawful operations and proper management.

China Mobile issued ten compliance guidelines regarding market competition, anti-bribery in commerce, cooperation with law enforcement, information security, bidding and procurement, project construction, labor and employment, network security, conflict minerals, and export control, further reinforcing close-loop compliance risk management.

With respect to overseas investment, the Company always begins with an in-depth analysis of the macro environment and in-dustry trends of target markets and fully considers the economic, social and environmental impact or value of the projects as a key determinant of investment decisions at all stages such as investment planning, opportunity selection, project implementation and investment decision-making.

We live the core corporate value of “Responsibility Makes Perfection”, comply strictly with laws and regulations on human rights protection, and play an active role in protecting the interests of vulnerable groups. Since becoming a member of the UN Global Compact in 2007, we have supported and actively implemented the UNGC Ten Principles, respecting and protecting internation-ally recognized human rights.

Risk Control

Our risk evaluation follows a three-tiered management structure comprising the Audit Committee, the departments re-sponsible for functional management, business as well as supervision and evaluation, and the Internal Control and Risk Management Expert Bank at the functional position level, with which we achieve specialized management over planning, decision-making, execution and implementation, thereby ensuring the continuous improvement and effective implementation of our internal control system. Having established regular risk assessment mechanisms and procedures, we conduct major an-nual risk assessment to evaluate our risk exposures and levels in areas such as strategy, market, finance, operations, legal and compliance as well as information technology, and gradually implement risk control measures and requirements.

Complying with Laws and Regulations

Compliance Escort Plan

For information on our corporate governance and specific financial performance, please refer to our annual report or website www.chinamobileltd.com.

Organized compliance trainings, set up the Compliance Escort section on our Online Uni-versity website, and organized the group-wide Compliance Escort Micro-video Contest.

Publicizing a culture of compliance

Strengthening compliance management in fo-cal areas

Promoted pilot compliance achievements in fo-cal areas such as bidding and procurement and engineering construction, and created compli-ance management mechanisms embedded in business to effectively prevent compliance risks; published research reports on export control, market competition, etc., and strengthened an-ti-monopoly compliance learning.

Formulated the China Mobile Compliance Man-agement Measures and set up an institutional system centered on compliance management to provide guidance for operations and manage-ment.

Formulating and optimizing compliance management regulations

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By further refining our risk prevention and control measures, we continued to strengthen monitoring over all kinds of risks in 2018. For each type of risks, we have developed a task breakdown template setting out specific countermeasures and work plans, embedding requirements for risk management into our daily work. We organized training on internal control and risk management and set up a tiered and categorized training system to enhance the risk management awareness of all employees.

In terms of internal audit, an Internal Audit Department is set up both at the Company’s headquarters and its operating subsid-iaries. They undertake financial audit, internal control audit, information system audit, risk evaluation and related work to deliver independent internal audit at each affiliated unit and improve the Company’s risk prevention and management capabilities. In 2018, we intensified audit supervision over areas such as Internet channels, information security and asset management to improve risk prevention and control, and also pushed forward information-based audit based on an in-depth application of tech-nologies such as big data and cloud computing, remarkably enhancing the efficiency and effectiveness of our audit.

Anti-corruption

China Mobile’s domestic operating units comply strictly with relevant laws and regulations such as the Supervision Law of the People’s Republic of China, and our overseas operating units all act in full compliance with local anti-corruption and anti-bribery laws and regulations. We gradually improve our four-in-one anti-corruption work system of “education, prevention and control, punishment, and accountability” to build a corruption free company.

Improving anti-corruption mechanism system

Strengthening integrity risk prevention and control

Improving supervision and accountability mechanism

Improving anti-corruption education on all fronts

In 2018, China Mobile formulated 15 regulations and regulatory documents including the “Guideline on Continuously Deepening Construction of Embedded Integrity Risk Prevention and Control Mechanism” and the “Provisions on Implementing the Eight-point Regulation of the Centre and Further Deepening Conduct Construction” to further solidify our anti-corrup-tion mechanism system construction.

We improved integrity risk prevention and control by conducting bottom-up checks and es-tablishing an integrity risk assessment system, exploring a maturity rate evaluation model for embedded prevention and control and compiling an evaluation manual, and setting up an important node normalized reminder and supervision mechanism.

We listed “micro corruptions” that harm customer and employee interest as one of our prior-ities for internal supervision and inspection. We conducted an investigation at our grassroots units and clarified corrective measures for prominent issues to drive effective rectification.

We compiled the “Work Guideline on Patrol Inspections 2018” and the related work manual to specify rules on patrol inspections. We established and deepened the embedded integrity risk prevention and control mechanism for the patrol inspection work stream to further stan-dardize the work of patrol inspection at all levels.

We established robust internal and external supervision mechanisms through reporting chan-nels such as email, dedicated phone number, CEO mailbox and on-site reporting during su-pervision and inspection. In 2018, the Company received 1,263 reports in the form of letters/visits, 85% of which have been handled and concluded.

We actively organized employee anti-corruption education and training programs and gave equal importance to concentrated education and daily education to develop an all-round, three-dimensional anti-corruption and integrity education structure.

We held the anti-corruption and integrity awareness month for the eighth consecutive year and provided innovative anti-corruption and integrity trainings complementary to face-to-face lectures with online education platforms such as a dedicated learning area in our Online University, MMS classrooms, video conferences and intranet live broadcasts to drive stronger employee engagement.

In 2018, the Company held 3,717 anti-corruption and integrity education activities, covering over 90% employees.

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Reinforcing Product Responsibility

China Mobile pays close attention to end product quality management and ensures product quality through measures such as continuously improving our end product quality evaluation system and standardizing our product labeling and advertising infor-mation communication.

For our proprietary branded products, we adopt a comprehensive quality management approach and develop correspond-ing guidance documents targeting product establishment, R&D, production and sales. We conduct product quality checks in four aspects, namely project quality review, company stock entry quality audit, national or industry test and certification, and post-launching spot checks. Pursuant to the guidance documents, we have measures in place to address products that do not pass quality checks, which include upgrade or repair, recall, rework, and the imposition of fines, depending on the severity of the problems. In 2018, we continued to reinforce special testing and evaluation of our personal, home and IoT end products to detect and resolve various problems in a timely manner and implement stringent quality control.

We act in strict compliance with the Advertising Law of the People’s Republic of China and the Trademark Law of the People’s Republic of China. We have formulated regulations including the China Mobile Management Measures on Advertising and Pub-licity, clearly requiring all types of information published for advertising purposes to be true and accurate, forbidding the use of unregulated pictures, terms or texts, and strictly prohibiting the unauthorized use of other people’s portraits, registered trade-marks, or works, etc., to ensure that our product information and labeling are faithfully communicated and that we engage in transparent and effective communication with our customers. Pursuant to the requirements of the Ministry of Industry and Infor-mation Technology of China, we further regulated tariff marketing management to ensure that our tariff plans are simple, clear, explained in standard terminology, and free from ambiguity.

Supply Chain Management

China Mobile endorses win-win partnerships with suppliers and works actively to create an open, fair, trustworthy and honest value chain. In 2018, we continued to clearly stipulate our supplier cooperation requirements and improve our test and assess-ment processes, thus gradually enhancing our responsible procurement management capabilities, with 100% of our partnering first-level centralized procurement suppliers having received our assessment.

We publicly published the China Mobile Suppliers Cooperation Guidelines, explicitly requiring our suppliers to fulfill their tax obligations, actively pay for social security and obey legal and regulatory rules for legal employment, labor protection, occu-pational well-being and safety, social responsibility, environmental protection, etc.

We devised the China Mobile Supply Chain Policy on Conflict Minerals and China Mobile Guidelines on Supply Chain Due Diligence Procedures for Con-flict Minerals, demanding suppliers to investigate into and report the use of conflict minerals in the supply chain.

We formulated the China Mobile Code of Conduct on Professional Integrity for Purchasing Personnel, requiring supplier managers to sign a Business In-tegrity Pledge, thereby guaranteeing that the pro-curement activities are standardized and fair.

We regard supplier risk management as part of the Company’s overall risk assessment and perform com-prehensive assessments on the economic, environ-mental and social risks of our suppliers by means of on-site inspections, questionnaires, external sustain-ability agencies, stakeholder information, external database, public opinion supervision, etc.

We use certificates for SA 8000 (Social Accountabil-ity), OHSAS 18001 (Occupational Health and Safety Assessment Series) and ISO 14000 (environmental management standards) as criteria for assessing suppliers’ overall capabilities, and perform on-site inspections; we require suppliers without such cer-tificates to provide supplementary explanation as re-gards employee safety and well-being, environmental protection, social contributions and other aspects.

We formulated the China Mobile Management Measures on Negative Acts of Tier-1 Centralized Suppliers, specifying punishment standards and work procedures, and helping suppliers rectify negative actions and enhance their integrity.

Operational guidance to suppliers Supplier risk management

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Indicator 2016 2017 2018

Financial Performance

Operating revenue 1 (RMB100 million) 7,084 7,405 7,368

Taxation (RMB100 million) 356 337 359

R&D and Innovation

Number of patent applica-tions (pieces) 1,684 2,006 2,222

Number of newly regis-tered patents (pieces) 684 753 1,040

Compliance and Anti-corruption

Number of Board Meet-ings in the year 4 4 4

Number of anti-corruption education activities in the year

3,951 3,580 3,717

Participation of anti-cor-ruption education and training (person-times)

696,106 722,720 759,810

Number of corruption cas-es disciplined in the year 232 275 321

Number of employees dismissed and disciplined for corruption in the year

302 414 433

Supply Chain Management

Number of suppliers 7,243 8,039 7,216

Number of first-level suppliers 553 571 480

Percentage of first-level local suppliers 2 (%) 100 100 100

Number of second-level suppliers 7,148 7,468 6,736

Percentage of second-level local suppliers 3 (%) 44.29 55.69 80.35

Number of assessments on first-level suppliers 4 2,393 2,417 2,194

Key Performance Indicators

China Mobile and SDGs

The arrival of the 5G era has presented telecommunica-tions operators with new opportunities for developing the next generation of ICT infrastructure and extending their digital service offerings as well as new possibilities for building sustainable cities and communities. In re-sponse, China Mobile actively leads the development of 5G technologies and industries, enhances the con-struction of innovative systems, and strives to facilitate the realization of the SDGs by comprehensively improv-ing its independent innovation capabilities, building an industry cooperation innovation mechanism, and collaborating with stakeholders in the R&D and pro-motion of 5G intelligent applications and solutions. At the same time, the Company continuously improves its compliance management and endeavors to establish an all-encompassing integrity risk prevention and control mechanism to continuously reinforce product respon-sibility and drive stronger sustainability management in the supply chain so as to promote its own healthy development as well as that of the entire industry.

Our Achievements in 2018

Extended 5G service applications to various fields such as intelligent life and smart transportation, accelerated the maturity of 5G technologies on all fronts, and contributed to an intelligent, beautiful lifestyle in collaboration with partners

Established industry research institutes and second-ti-er R&D research agencies in Xiong’an New Area, Chengdu and Shanghai and set up smart hardware innovation centers, thereby deepening R&D mecha-nism reform, enhancing comprehensive independent R&D capabilities, and advancing the Company’s digi-tal transformation and development

Enhanced our compliance institutional system, con-tinued to promote the Compliance Escort Plan, and further intensified risk prevention and control as well as anti-corruption education

Accelerate 5G scale experimentation and application innovation with a view to realizing 5G pre-commer-cial use in 2019 and 5G commercial use in 2020 so as to jointly advance the maturity of the 5G industry

Work with business partners to develop 5G innova-tion demonstration projects to provide novel infra-structure and intelligent applications that support the construction of sustainable cities and communities

Further optimize compliance and anti-corruption management, solidify the construction of a culture of integrity, and leverage our leading position in the industry to realize healthy development with higher standards

Our Goals for 2019

Our Sustainable Development Rationale

Note:

1. The Company has applied the new revenue standard (IFRS/HKFRS 15) since Jan-uary 1st, 2018.

2. Percentage of first-level local suppliers means the proportion of domestic suppli-ers (registered in Mainland China) in all suppliers for the first-level procurement. We did not conduct any international tendering projects in 2018, thus did not have any international supplier.

3. Percentage of second-level local suppliers means the proportion of suppliers registered in a province for the second-level procurement of that particular Chi-na Mobile provincial subsidiary.

4. The number of supplier assessments carried out by our Procurement Shared Ser-vice Center, covering both winning and non-winning suppliers for the first-level procurement.

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07

Combating Climate Change

Greenhouse gas emissions are a major contributor to climate change. Pursuing green, low-carbon development and coping with climate change have become the global consensus. China Mobile has developed a climate strategy centered on energy conserva-tion and emission reduction and has made a positive contribution to showing down global warming by continuously promoting the Green Action Plan since 2007 and enhancing its environmental management capabilities.

In 2018, we formulated the “Guideline on China Mobile Green Action Plan 2018”, reinforcing management at source, promot-ing “whole-process, full-stage, all-employee” energy conservation and emission reduction and making sure that our operations complied with the Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, the Law of the People’s Republic of China on Conserving Energy, and other relevant laws and regulations.

Building a comprehensive risk management system whereby the issue of climate change is incorporated into various stages includ-ing the identification, screening, integration, ranking and management of risks and opportunities, and formulating and improving the Environmental Management System.

Identifying the departments responsible for energy conservation and emission reduction management, and including indicators such as total energy consumption per unit of telecom business and power usage effectiveness (PUE) into the employee performance ap-praisal system of subsidiaries, and forming energy conservation and emission reduction working groups to oversee the management of climate change and energy related issues in business, networks and office activities.

Improving the Carbon Emissions Management System, demonstrating our climate change strategy, management system, risks and opportunities as well as carbon emissions management performance from the dimensions of disclosure, awareness, management and leadership, and promoting the fulfillment of carbon trading commitments at China Mobile’s headquarters, China Mobile Beijing Company, and CM Tietong’s headquarters and Beijing branch.

Creating an energy management system that covers 31 provincial subsidiaries and hiring third-party organizations to perform ener-gy audit and authentication, in order to implement overall monitoring of the Company’s daily energy consumption indicators.

Pushing forward ISO 14001/50001 environmental/energy management system certification efforts, with our provincial subsidiaries in Beijing, Guangdong, Zhejiang, Fujian and Shaanxi (as well as their city-level subsidiaries) certified to have demonstrated compli-ance with international standards for environmental/energy management.

Strengthening environmental information disclosure and management and continuously improving environmental management measures through participation in CDP (Carbon Disclosure Project) and other relevant industry evaluation surveys.

Improving Environmental Management System

Committing to Green Development and Environmental Protection

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Environmental Protection

Reducing Resource Consumption

China Mobile attaches great importance to the reasonable utilization of resources and fulfills its commitment to building a sound ecosystem and environment by intensifying technological innovations, promoting green operations and management both with-in the Company and in the value chain, and enhancing the environmental awareness of employees and the wider public.

Since 2008, China Mobile earmarks a special budget for energy conservation and emission reduction every year to be used for energy-efficient renovations at base stations, data centers, office buildings and stores. In 2018, we further reinforced energy conservation management at our data centers to minimize costs and enhance efficiency. In terms of management approach, we gradually improved the energy efficiency monitoring and management and control system at our data centers, increasing the ambient temperature in machinery rooms and implementing an intelligent air conditioner group control mechanism. On the technology front, we encouraged the use of more energy-efficient integrated rack servers and multi-node servers and recom-mended putting servers on dynamic energy-efficient operations mode. We also adopted a range of technological renovations in the machinery room facilities, including airflow organization optimization, natural cold source application, air conditioner cold source transformation, waste heat recycling, etc. to continuously improve the energy efficiency at our data centers.

In 2018, China Mobile International Information Port Phase-I Data Center, Southern Base Cloud Data Center, Shanghai Ningqiao Data Center, Guizhou Data Center were included in the first batch of national green data centers. Compared with the previous year, the Company’s overall energy consumption per unit of information flow decreased by 57% and the overall energy con-sumption per unit of telecom business decreased by 53%.

China Mobile is actively involved in developing and applying energy-efficient technologies such as 4G base station sleep technol-ogy and multi-network coordination energy-saving system as well as innovating and exploiting low-carbon information-based applications and products. At the same time, the Company strives to enhance the proportion of renewable energy sources in areas rich in clean sources of energy such as solar, wind, water and hydrogen but lacking traditional electrical power to drive en-ergy conservation and emission reduction in the whole society.

In 2018, we further promoted low-carbon applications such as intelligent charging points and smart meter reading. Income from our low-carbon information-based applications accounted for approximately 7.3% of the Company’s annual revenue. Mean-while, we intensified R&D of 5G energy-efficient technologies and launched environmental protection guardian products based on frontier “IoT + AI + big data” technologies, realizing 24/7 real-time monitoring over air quality and facilitating the construc-tion of a complete, regionally integrated air pollution monitoring network boasting enhanced effectiveness in environmental protection.

China Mobile actively implements green operations by promoting the use of online office software such as Cloud Video System and Conference Assistant as well as paperless office systems such as OA, mail, supply chain management, and the electronic procurement and bidding system. Meanwhile, the Company cultivates its employees’ low-carbon habits by advocating green, healthy and energy-efficient lifestyles. In 2018, 35,774 projects were posted in our electronic procurement and bidding system, and the wholly electronic procurement process resulted in the reduction of about 141,000 paper-based bidding documents.

In strict compliance with related requirements of the Water Law of the People’s Republic of China and the Water Pollution Pre-vention and Control Law of the People’s Republic of China, China Mobile continues to intensify management over daily water use, strictly controls the emission of waste water, advocates water conversation, and encourages the recycling and reuse of rain-water and reclaimed water, thereby reducing the consumption of water resources.

In 2018, we further reinforced the management of water use in our machinery rooms, management rooms and stores, realizing zero growth in the average water use per person in management rooms. A rainwater collection and utilization system was built in China Mobile (Xixian New Area, Shaanxi) mobile data center phase I. The system collected, processed and stored rainwater, which was then used as a supplementary water source for watering greens and washing roads, thus enhancing the efficiency of water resources use.

Intensifying Energy Reduction Renovations

Innovating Environmental Protection Applications

Promoting Green Operations

Water Resource Management

Our Energy Conservation Awareness Week, themed “Green intelligent connectivity; a future cre-ated together”, continued in 2018. Through offline activities such as “Low-Carbon Life Hacks” and “Count Me in Environmental Protection” and the online annual “Carbon Emissions Test”, the Company promoted energy conservation and environmental protection measures among its employees and the wider public based on its own business platform and channels like new me-dia.

S c a n t o w a t c h China Mobile En-ergy Conservation Awareness Week Proposal video.

Energy Conservation Awareness Week Featuring Green Connectivity

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China Mobile constantly explores and improves the standardized management of waste classification and recycling. Pursuant to the requirements of the Law of The People’s Republic of China on Prevention of Environmental Pollution by Solid Wastes, the Catalogue of Waste Electrical and Electronic Products for Disposal (2014) and other relevant laws and regulations, the Company classifies waste into general waste, electronic waste and hazardous waste. Hazardous waste is processed by technological means or handed over to specialized agencies for treatment, while non-hazardous waste is recycled and reused or disposed of accord-ing to relevant laws and regulations.

We encourage customers involvement to participate in environmentally friendly recycling initiatives. We organized the Green Box Environmental Protection Campaign in combination with our And Machine Swap service, recycling electronic waste such as scrap mobile phones and mobile phone accessories and offering smart terminal refurbishment services in a number of provinces. In 2018, a total of 39,909 electronic items were recycled via the Company’s Green Box volunteer initiative.

Waste Management

In 2018, China Mobile Zhejiang Company set up an information-based hazardous waste management platform in Huzhou. By electronically recording all stages of waste management encompassing collection, storage, utilization and disposal, the platform ensures the standardization and traceability of hazardous waste management, timeliness of its entry and exit, legality of transfer, and compliance with waste disposal agency qualifications. At present, three types of hazardous waste have been included in the platform.

China Mobile actively propels suppliers’ full-lifecycle energy conservation and emission reduction encompassing R&D, manufac-turing, transportation and recycling of products. By setting energy conservation standards for the telecommunications industry chain, the Company drives suppliers to adopt green designs. By renewing energy efficiency grading standards and procuring en-ergy-efficient products, we are fueling the green transformation of the industry chain.

We have formulated the China Mobile Electromagnetic Fields Management Methods, combining random inspections by experts with daily monitoring at provincial subsidiaries to safeguard continuous monitoring of our base stations, keeping electromag-netic radiation within regulatory limits and protecting the health and safety of residents. We customized our publicity vans by equipping them with in-vehicle electromagnetic radiation dynamic monitoring systems, professional testing devices and technical personnel and raised the awareness of residents through educational activities such as expert Q&A, educational videos and on-site electromagnetic radiation tests on household appliances, thereby facilitating deep engagement with the community and dispelling public concerns.

Green Supply Chain

Electromagnetic Radiation Management

Hazardous Waste Management Platform

Green Packaging

In 2018, we continued to promote the use of green packaging. We replaced the traditional wood packaging with environ-mentally friendly or recyclable materials such as metal trays, metal circulation racks and environmentally friend cartons. We demanded our suppliers to fulfill their commitment to centralized procurement, ensuring that the green packaging usage ratio of newly added main equipment reached 67%, equivalent to 168,000 m3 of wood saved. We promoted green pack-aging recycling among our suppliers, achieving effective material recycling and reuse and energy consumption reduction. We also started adopting customized delivery bags for our SIM cards.

Green Warehousing

With a view to building energy-efficient and environ-mentally friendly warehouses, we renovated the mode and intensity of lighting in some of our warehouses in 2018. By changing to LED lights, using voice-control switches and enforcing rules on “one-hour lights off during lunchtime”, we reduced warehouse electricity use by 50%.

Green Transportation

Since June 2017, our pilot zero-emissions “new energy vehicles” have been put into operation in Shanghai, Guangxi and other provinces/regions to carry out green transportation. As of December 2018, 14 such vehicles had been put in use.

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“Lucid waters and lush mountains are invaluable as-sets.” Economic development and business activities should not be pursued at the expense of a sustainable ecosystem. China Mobile pays attention to the con-tinued rise in the energy consumption as a result of its extensive network construction and implements energy conservation and emission reduction and cost optimiza-tion by improving its environmental management sys-tem, promoting energy efficient renovations, innovating energy efficient technologies, introducing renewable energy sources, and optimizing waste management. The Company takes areas such as smart cities, smart delivery and intelligent transportation as key scenarios for 5G application innovation and actively develops en-ergy efficient and environmentally friendly solutions to contribute to the construction of ecological civilization.



Indicators 2016 2017 2018

Energy Consumption

Total electricity consumption (100 GWhs) 197.1 223.3 244.7

Natural gas consumption (mil-lion m3) 9.1 7.9 11.2

LPG consumption (100 tonnes) 3.7 3.1 2.7

Coal gas consumption (million m3) 0.20 0.10 0.05

Coal consumption (10,000 tonnes) 0.5 0.1 0.2

Total gasoline consumption (million liters) 126.9 121.5 112.4

Total diesel fuel consumption (million liters) 17.6 19.4 14.8

Purchased heating costs (RMB million) 150.4 160.9 123.4



Continued to improve our environmental manage-ment system and realized the reduction of our over-all energy consumption per unit of information flow by 57% compared to last year through measures like energy-saving renovations, environmentally friendly applications and green operations

100% of our bidding projects were handled via our electronic procurement and bidding system, realiz-ing fully electronic procurement

Gradually explored and improved our waste man-agement and promoted the use of lightweight and green packaging materials, achieving a percentage of 67% in the use of green packaging for newly purchased equipment

Reduced our annual energy consumption by 2,660 GWhs, equivalent to a reduction of GHG emission by 1.706 million tonnes

Reduce our overall energy consumption per unit of information flow by 15% compared with 2018 and our overall energy consumption per unit of telecom business by 10%

Continue to promote the use of green packaging, urge suppliers to fulfill their centralized procurement commitment, and keep the percentage of newly purchased equipment that uses green packaging at no lower than 60%

Our Goals for 2019

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Emissions

CO2 emissions (million tonnes) 14.38 15.98 16.17

Direct GHG emissions (Scope 1) (million tonnes) 0.35 0.33 0.31

Indirect GHG emissions (Scope 2) (million tonnes) 14.03 15.65 15.86

Carbon emission intensity (tCO2e/ RMB10,000) 0.203 0.216 0.219

SO2 emissions (tonnes) 95.22 23.59 35.93

NOx emissions (tonnes) 0 0 0

CH4 emissions (tonnes) 0 0 0

Carbon emissions from com-mute (10,000 tonnes) 59.87 37.79 39.45

Carbon emissions from business travels (10,000 tonnes) 9.25 29.44 7.10


Energy Savings

Total electricity savings (100 GWhs) in the year 3.8 21.4 26.6

Equivalent cost savings (RMB100 million) in the year 5.2 28.9 37.7

Equivalent GHG emission reduc-tion (10,000 tonnes) in the year 26.4 148.5 170.6


Water Use

Total amount of water con-sumption (million tonnes) 41.25 42.24 35.12

Average amount of water con-sumption per employee (tonnes) 90 91 76


Green Operations

Number of cross-provincial vid-eoconferences at headquarters 800 882 970

Online sales volume (RMB100 million) 3,934 4,648 4,785

Reduction in overall energy con-sumption per unit of informa-tion flow (%)

36 40 57

Investment in Green Action Plan (RMB100 million) 1.9 1.4 1.9

Total amount of resources used for producing terminal devices (tonnes)

3,171 8,847 9,394


Weight of Waste Recycled by Certified Third Parties

Network waste (tonnes) 21,046 32,531 35,559

Acid batteries (tonnes) 13,997 20,219 19,458

Communication equipment (tonnes) 3,366 6,869 10,743

Cables (tonnes) 1,088 2,136 2,203

Other waste (tonnes) 2,595 3,307 3,155

Office waste (tonnes) 1,512 2,367 4,102

Electronic equipment (tonnes)

1,234 1,895 2,941

Other waste (tonnes) 278 472 1,161

Devices (tonnes) 184 137 98

Total (tonnes) 22,742 35,035 39,759


Value of Waste Recycled by Certified Third Parties

Network waste (RMB10,000) 10,574 21,255 22,898

Acid batteries (RMB10,000) 7,942 13,220 13,103

Communication equipment (RMB10,000)

1,513 3,727 6,886

Cables (RMB10,000) 386 3,313 1,684

Other waste (RMB10,000) 733 995 1,225

Office waste (RMB10,000) 712 892 1,717

Electronic equipment (RMB10,000)

612 798 1,336

Other waste (RMB10,000) 100 94 381

Devices (RMB10,000) 140 122 297

Total (RMB10,000) 11,426 22,269 24,912


Waste Management

Hazardous waste (tonnes) 22,742 35,035 10,165

Non-hazardous waste (tonnes) - - 29,594

Hazardous waste emission inten-sity (kg/RMB10,000)

- - 0.14

Non-hazardous waste emission intensity (kg/RMB10,000)

- - 0.40

Note: In 2018, the Company classified its waste more finely and disclosed weight and intensity of hazardous/non-hazardous waste emission recycled by certified third parties.

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Drawing on continuous improvement to its training system and innovation in its incentive mechanism, China Mobile strives to cultivate the next generation of multi-talented workforce in network, IT system, digital services and other key areas. The Compa-ny fosters innovation among all employees, and shares with them the value of sustainable development.

Improving Effectiveness of Training

China Mobile has formulated and strictly abides by the Training Management Methods and implements the annual training plan in an orderly fashion. The Company develops the caliber of capabilities needed for transformation and development based on its key groups, key capabilities and position characteristics.

In 2018, we strengthened the full-process closed-loop management of our training projects, continued to carry out annual training project evaluation, and constantly enhanced the effectiveness of various lines of professional training work. Meanwhile, we worked to enhance our training and teaching abilities on all fronts by actively improving our integrated Group-wide internal trainer development system, organizing a rich variety of teaching and research activities such as course teaching and develop-ment and course delivery to grassroots employees, and engaging in a concerted effort to develop and share excellent internal teaching resources.

We continuously explored and applied a variety of employee training methods, and designed training programs that matched the subject matter of trainings and characteristics of participants. In 2018, we adopted online and offline community-based learning, guided discussion, online learning, experience distillation, outreach training and other learning methods to improve the perti-nence and effectiveness of our trainings. In 2018, we provided training for 1.821 million person-times in total, and the average training time per employee reached 100.8 hours.

Supporting Employee Development

We held the Mobile Voyage New Employee Growth Camp, where participants received learning resources on a themed basis and had their personalized and varied learning needs met through a number of inter-active means of learning.

We strengthened leadership training for top management in the transformation phase to improve their team man-agement strategic thinking and ability to discharge work responsibilities, and provided targeted training modules for middle management to im-prove their strategy execution capabilities.

We reinforced systematic training for our backbone personnel by promoting our network marketing course system, deepening the im-plementation of group client manager learning roadmap and launching centralized audit capability enhancement programs for audit manage-ment personnel.

We formulated the New Drivers Capability Enhance-ment Plan, completed the development of skill maps and learning roadmaps, and conducted intermediate and advanced network training as well as business support expert advanced IT training to further reshape the core competencies of our technical personnel.

New employees Management Business elite Technological personnel

Facilitating Employee Growth and Fostering Innovative Talents

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In 2018, we made an all-out effort to establish a technological innovation reward system. We reformed our rewards for tech-nological advancements as well as business and service innovations and formulated the China Mobile Technological Innovation Management Measures, further complementing our innovation incentive mechanism. We rewarded major technological inno-vations, on-the-job technological innovations, and fruition of technological endeavors. We continued to increase our rewards to incubation-oriented innovation and entrepreneurship efforts and make sure that our employees are incentivized.

We provide our employees with an internal mass entrepreneurship and innovation incubation service platform and host the Chi-na Mobile Independent Development Competition to unleash our employees’ innovative potential. In 2018, ten teams from nine provincial subsidiaries were shortlisted for the finals of our 4th Independent Development Competition.

Innovation Incentive Mechanism

Based on our new Online University platform, we provide low-cost, expansive, universal and convenient training programs for employees on a Group-wide basis, featuring an organic combination of online training on PC and mobile phone and offline training. Our online learning program focuses on the 10 major projects under our Big Connectivity strategy. In 2018, the pro-gram offered nearly 40 themed learning modules such as intelligent IoT and AI with a viewership of over 1 million person-times, and held 510 job post skills certification exams with a candidature of over 240,000 person-times.

“Wukong”, a smart image converter developed by a team from China Mobile Chongqing Company, entered the finals of the China Mobile 2018 Independent Development Com-petition and won an award. Not only can the product be used by the general public to perform such image processing functions as old photo renovation and shake reduction but it can help image processing professionals improve their user interface (UI) design efficiency as well. During its participation in the competition, the team was provided with resource sup-port by China Mobile such as R&D cloud and AI platform. The process of working hard together to solve one tough problem after another helped the team hone their technological com-petencies and motivated them to undertake more innovation R&D to help solve real-life problems.

“The competition has helped us establish a technological basis in a new field. In overcoming difficulties along the way, we have achieved progress and growth. We are greatly thankful to the Com-pany for providing us with a platform for self-realization.”

— Cao Xu, Team Leader

“With the help of the Company and my team, I have overcome my fear of public speaking. It took me a lot of courage and also gave me a strong sense of fulfillment. It has made me realize that with passion and dreams, one’s possibilities are limitless.”

—Wang Feng, Team Member

Online Learning Program

Smart “Wukong” and Its Penetrating Eyes

In 2018, China Mobile was awarded the “Most Socially Responsible Employer Award” under the China Best Employer Awards.

China Mobile University was awarded the “Outstanding Contribution Award” under China’s Best Enterprise University Rankings 2018, the “Excellent Enterprise University Award” and “Enterprise Universities Top 50” under the China Talent Development Elite Awards, as well as the “Advanced Enterprise University Award” and “Advanced Network Academy (Online Platform) Award” by the China Association for Executives Development.

China Mobile Hong Kong Company was awarded the “Best Employer Award 2018” by Job Market.

“Wukong” team road show at the finals of the Independent Develop-ment Competition

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Since 2013, we have held “The Most Beautiful Mobiler” event every year to recognize the individual value of our employees and develop a role model for growth. In 2018, 21 of our employees (group) were each named “The Most Beautiful Mobiler”.

A veteran in mobile telecommunications operations and R&D, Yang Weimin initiated the establishment of the Fujian Mobile Network Maintenance Innovation Studio. He has led his team to overcome technological barriers in 35 fields and successfully implemented their prod-ucts in more than ten provinces/cities, generating a comprehensive economic return of over RMB450 million and helping save RMB33 million in annual cost. Moreover, Yang Weimin has spent all his bonuses received over the years, totaling hundreds of thousands of RMB, on tal-ent cultivation in an effort to build a strong caliber of technological talents.

As a technological pioneer, Cen Shuwei has led his team to break innumerous barriers to achieve groundbreaking success in large-scale 4G pilot networks and support Hangzhou City in its launch of China’s first 4G-covered bus line. He delivered a multitude of innovations in new technologies, connected cars, Internet of Things and other areas during the G20 Hang-zhou Summit, achieving new heights of performance in the network quality and perception of Hangzhou city. Now, Cen Shuwei is leading his team to explore 5G networking models and standards and actively participate in the construction project of the “5G Demonstration Area” thereby making preparations for the imminent arrival of the 5G era.

China Mobile strictly complies with the laws and regulations on employee rights protection, including the Labor Law and Labor Contract Law of the People’s Republic of China, the Special Provisions on Labor Protection of Female Employees, and the Law of the People’s Republic of China on the Protection of Rights and Interests of Women, as well as those of overseas jurisdictions where it operates, in order to protect the legitimate rights of its employees by various means.

We respect and protect our employees’ rights to information and expression and enable robust employee feedback mechanisms by establishing the CEO mailbox, hotlines, employee forums, employee representative conferences and other channels. More-over, we collect written feedback, hold employee conversation and conduct field surveys to comprehensively review outstanding practices, typical cases and employee demands as regards employee rights protection. We compile those findings into themed research reports and focal problem summaries, which are important tools for improving our ability to protect employee rights and interests.

“Gold Digger” in the Big Data Era – Yang Weimin

The “Pathfinder” that Delivers the Mobile Speed – Cen Shuwei

We formulated and strictly abide by the Management Approach on Employee Recruitment and ensure that our hiring process is open, fair and transparent by establishing a scientific, standard and systematic recruitment system. We do not use discriminating recruitment requirements and strictly forbid the use of child labor and forced labor. We optimized our employee career development system and relevant guid-ance to advance the construction of employee promotion and career development channels.

We revised and distributed the Labor Management Regulations to further implement standardized labor management as regards job classification, forms of labor, labor contract, work time, rest and vacation, and other aspects. We protect employees’ legitimate rights to remuneration, work time, rest and vaca-tion, insurance and benefits, and other aspects. The average salary of our employees is higher than local minimum wage.

We formulated the China Mobile Implementation Plan for Incentive Annuities and built a comprehensive employee benefits insurance system. We formulated targeted special incentive and dedicated incentive plans to improve our employees’ sense of gain.

We prioritized and strengthened “four-period protection” (covering menstrual period, pregnancy period, delivery period and breastfeeding period) to cater to female employees’ special needs.

Recruitment and promotion

Remuneration and benefits

Protecting Employee Rights and Interests

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In 2018, China Mobile invited professional lawyers to offer lectures to our female employees on the Law of the People’s Republic of China on the Protection of Rights and Interests of Women, the Special Provisions on Labor Protection of Female Employees, and relevant laws and regulations. We held one-to-one and one-to-many face-to-face communication sessions to collect sugges-tions and opinions from our female employees, thereby delivering timely solutions to frequently raised issues and improving their ability to safeguard their own legitimate rights and interests.

China Mobile strictly abides by relevant laws and regulations such as the Labor Law of the People’s Republic of China and the Law of the People’s Republic of China on the Prevention and Treatment of Occupational Diseases in providing a safe work environment and safeguarding employees against occupational hazards.

We continued to provide all of our employees with medical examination and health lectures, with a medical examination rate of 97% in 2018. We provide essential assistance to alleviate the pressing needs of sick and troubled employees by offering poverty aid fund, major illness assist fund, medical insurance, employee mutual help fund, etc..

We promoted the physical and mental well-being of our employees and helped them balance their work and life demands by implementing initiatives such as the Employee Assistance Program (EAP), “Five Smalls” (small canteens, small lounges, small bath-rooms, small activity rooms and small libraries) project, and “Happiness 1+1” (engaging in 1 sports activity and developing 1 hobby) program.

The China Mobile “Happiness 1+1 program started in 2015 and calls on employees to participate in 1 sports activity and develop 1 hobby. The program is designed to improve employ-ees’ physical and spiritual well-being by encouraging them to take part in activities such as brisk walking, yoga, basketball, mountain climbing, calligraphy and photography. Our “Hap-piness 1+1” events in 2018 included China Mobile Employee Ping Pong Competition, Happiness 1+1 Parent-child Talent Show, public welfare tree planting and many more, attracting the participation of 332,000 employees.

In terms of employee safety, we revised the China Mobile Responsibility System for Safe Production and compiled publicity mate-rials such as the China Mobile Electrical Safety Manual, the Elevator Safety Management, and the Personal Safety Instructions for Women. Additionally, we organized a variety of training and education activities to raise employees’ safety awareness, including the Safe Production Month, the Fire Control Awareness Month, as well as safety management personnel capability enhancement training and new employee safety orientation.

As regards emergency preparedness, we formulated the China Mobile Emergency Response Plan and actively organized emer-gency drills and improved our emergency preparedness procedures, thereby continuously enhancing our ability to handle emer-gencies and engage in safe production. By doing so, we strove and prevent emergencies and reduce their negative impact on our operations and to ensure employee safety during production.

Female Employee Rights Protection Training

”Happiness 1+1”

In 2018, we continued to promote our “Five Smalls” project (small canteens, small lounges, small bathrooms, small activity rooms and small libraries). We invested RMB557 million and prioritized areas with harsh natural conditions and backward infra-structure, satisfying the basic needs of our grassroots employees for food, water and access to the bathroom and improving their work conditions.

“Five Smalls” Employee Care Project

China Mobile continued to fully implement the Employee Assistance Program (EAP). Through the program, we provide an all-year-round psychological consultation hotline and managers’ hotline and work with professional units to offer an array of ser-vices that cover all our employees including face-to-face psychological consultations, themed sharing sessions, psychological health tests, high depression tendency screening, psychological crisis identification and prevention, etc. to contribute to our employees’ psychological well-being. In 2018, Our EAP activities covered over 320,000 employees from 31 provincial subsidiar-ies and specialized services companies and directly affiliated units. So far, we have trained 3,093 EAP specialists and set up 120 stress relief rooms and care rooms.

Employee Assistance Program (EAP)

Happiness 1+1 Employees’ Arts Show

Promoting Employee Well-being

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Total number of employees 460,647 464,656 459,152

Human Resource Composition

Percentage of technical personnel (%)

- 23.34 25.18

Percentage of marketing personnel (%)

- 56.56 55.17

Percentage of manage-ment personnel (%)

- 7.25 7.29

Percentage of general affairs personnel (%)

- 10.09 10.50

Other personnel (%) - 2.76 1.86


Against the development backdrop of the imminent arrival of an era of intelligent IoT accelerated by the 5G technology, it is vitally important for telecom operators to attract and retain cornerstone talents and boost the technological transformation of their employees. In light of the critical demand for transformational development in order to achieve sustainable development, China Mo-bile endeavours to promote the cultivation of innovative talents by further increasing investment in its innova-tion incentives and training resources. Meanwhile, the Company is intent on sharing the value of sustainable development with the employees by providing more ro-bust career advancement channels, better opportunities for innovation and entrepreneurship, more complete benefits plans, and a more accommodating work envi-ronment.




Improved the incentive mechanism, innovated train-ing methods and strengthened innovative talent cultivation, providing 1.821 million person-times of training to our employees

Provided a well-run employee complaint mechanism and intensified protection of employee rights and interests, with 100% of our headquarters, provincial subsidiaries, with and specialized services companies signing collective bargaining contract with employ-ees, and 100% of our female employees returning to work after maternity leave at headquarters level

Implemented activities such as the Employee As-sistance Program (EAP), Five Smalls project and Happiness 1+1 to promote the physical and mental well-being, covering over 320,000 employees

Promote implementation of the New Drivers Capac-ity Enhancement Plan and further reshape the core competencies of the workforce at the stage of trans-formation to gradually enhance the comprehensive capabilities of technical personnel

Further innovate incentive mechanism and establish more diversified and categorized employee incentives

Fully respond to diverse employee demands, contin-ue to improve employee rights protection and strive for harmonious labor relations

Our Goals for 2019

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Diversity

Percentage of employees under 30 years of age (%) 35.15 29.62 24.35

Percentage of employees between 30 and 50 years of age (%)

61.25 65.95 71.13

Percentage of employees over 50 years of age (%) 3.60 4.43 4.52

Percentage of female em-ployees (%) 55.54 55.11 53.17

Percentage of female em-ployees at senior manage-ment level (%)

18.00 13.18 16.45

Percentage of ethnic mi-nority employees (%) 7.16 6.83 7.03

Percentage of local em-ployees in Hong Kong Company (%)

91.9 89.4 89.5

Percentage of local employ-ees at management level in Hong Kong Company (%)

70.7 75.0 71.2

Employee Turnover

Total number of employees newly hired in the year 16,842 27,011 20,259

Number of female em-ployees newly hired 9,040 14,194 8,397

Number of male employ-ees newly hired 7,802 12,817 11,862

Total number of employees resigned in the year 10,404 14,831 18,217

Number of resigned female employees 5,950 8,242 9,411

Number of resigned male employees 4,454 6,589 8,806

Total number of employees dismissed in the year 636 925 1,317

Number of female em-ployees dismissed 347 589 888

Number of male employ-ees dismissed 289 336 429

Percentage of employees resigned and dismissed among employees under 30 years of age (%)

1.94 2.24 1.55

Percentage of employees resigned and dismissed among employees between 30 and 50 years of age (%)

0.95 1.59 2.56

Percentage of employees resigned and dismissed among employees over 50 years of age (%)

0.02 0.21 0.15

Female employee turnover (%) - - 2.05

Male employee turnover (%) - - 1.92

Note: The indicators under Diversity and Employee Turnover are based on the number of on-post employees at the end of 2018.


Employee Training

Training expense per em-ployee (RMB) 1,646 1,717 1,892

Total number of employees trained (10,000 per-son-times)

154.9 183.9 182.1

Number of senior man-agement trained (per-son-times)

867 986 1,047

Number of middle-level management trained (person-times)

15,546 28,669 18,744

Number of general em-ployees trained (10,000 person-times)

153.2 181.0 180.1

Average training time per employee (hours) 64.4 88.5 100.8

Average training time per senior management (hours)

99.8 106.9 106

Average training time per middle-level man-agement (hours)

79.8 88.1 109.5

Average training time per general employee (hours)

64.2 88.6 100.7

Number of Online Universi-ty users (10,000 persons) 39.5 40.5 41.6

Average Online University study time per employee (hours)

38.2 50 53.6

Number of Online Univer-sity users via mobile phone (10,000 persons)

27.8 29.1 34.5


Respecting and Protecting Human Rights

Number of jobs created (10,000) 268 260 288

Percentage of contracted employees who are labor union members (%)

100 100 100

Percentage of dispatched employees who are labor union members (%)

98 98 98


Health and Safety Management

Number of safety emer-gency drills 1,214 1,250 1,225

Participation rate in safety emergency drills (%) 86 86 86

Accident fatality rate per 1,000 employees (%) 0.0065 0.004 0.004

Number of fatalities caused by production safety inci-dents

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